India’s Haldia Petchem raises PE, PP prices ahead of shutdown

12 July 2011 11:06  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Haldia Petrochemicals Ltd (HPL) has raised its list prices of polyethylene (PE) and polypropylene (PP) on 12 July because its supply has tightened ahead of an upcoming planned shutdown, a company source said on Thursday.

The producer hiked its prices of high density PE (HDPE) and PP by Indian rupees (Rs) 2/kg (Rs2,000/tonne, $45/tonne) and raised its price of linear low density PE (LLDPE) by Rs3/kg, the source added.

The new prices are at around Rs76/kg DEL (delivered) for HDPE film, Rs76-76.5/kg DEL for LLDPE film and Rs84/kg DEL for injection-grade PP.

The new price of raffia is at around Rs85/kg DEL, while that of isotatic PP film is at around Rs86/kg DEL.

Biaxially oriented polypropylene (BOPP) film is now at around Rs86/kg DEL and block copolymer is at around Rs88/kg DEL.

All the prices are effective from 12 July.

HPL is planning to shut its 700,000 tonne/year HDPE/LLDPE and 340,000 tonne/year PP plants, which are located at Haldia in West Bengal, in the third week of July for at least one week of maintenance.

However, market players said they expect the shutdown to begin on 15 July and last for 18-21 days because of a persistent technical issue that needs urgent attention.

A source from HPL has denied the claim and said the shutdown will start in the third week of July, as scheduled.

Other local producers said they are shocked by the higher list prices, but are revising their offers higher as a result.

“Our new prices will be announced in one to two days’ time and this will be in line with the higher Haldia prices and buying ideas for imports,” a source close to India’s Reliance Industries Limited (RIL) said.

Buying ideas for HDPE film on 12 July were at as high as $1,350/tonne (€959/tonne) CFR (cost & freight) India Main Port, while those for PP raffia were at $1,500-1,550/tonne CFR India Main Port.

Buying ideas for LLDPE film on 12 July were at $1,280-1,320/tonne CFR India Main Port, local players said.

($1 = Rs44.48, $1 = €0.71)

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By: Ong Sheau Ling
+65 6780 4359

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